Question

Discuss the techniques of Inventory Control.

12 Jun 2026
Answer :
Word Count : 336
Inventory control refers to the systematic process of maintaining the optimum level of inventory to ensure uninterrupted production and customer satisfaction while minimizing inventory-related costs. Effective inventory control techniques help organizations balance ordering costs, carrying costs, and stock-out risks. ABC analysis is one of the most widely used techniques. It classifies inventory into three categories based on value and importance. Category A includes high-value items requiring strict monitoring and tight control. Category B consists of moderately valuable items requiring regular supervision. Category C includes low-value items managed through simpler control procedures. This classification enables managers to allocate resources efficiently. Economic Order Quantity (EOQ) determines the ideal order quantity that minimizes the combined costs of ordering and holding inventory.
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